Biden's proposed tax hikes punish the US economy: Rep. Kevin Brady

Biden tax hikes are ‘major economic blunder’: Rep. Kevin Brady

Rep. Kevin Brady, R-Texas, discusses the negative impact of President Biden’s proposed tax increases.

Rep. Kevin Brady, R-Texas, told FOX Business' "Mornings with Maria" that President Biden is "punishing the economy" through his proposal to tax capital gains and that these tax hikes will have a negative impact on small businesses and blue-collar workers.

SEN. PAUL: RAISING CAPITAL GAINS TAX WILL LEAD TO 'SIGNIFICANT MARKET REACTION'

KEVIN BRADY: This is another major economic blunder by President Biden. Look… after the tax cuts and Jobs Act investment surged in America, and as a result, it was blue-collar workers, it was local communities that benefited. When you double that tax, you have the opposite effect. In reality, you wouldn't… encourage a cure by punishing the most frequent and successful researchers. You don't rebuild a healthy economy by punishing those who invest in that local in the U.S. economy. And that's exactly what you have here. So at the end of the day, America, again, American workers are the net loser in President Biden's capital gains proposal.

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There is a difference between the parties here, so we do, Republicans do, tax policy so that we can get more growth, more productivity, more investment, and we're more competitive around the world. Democrats do tax policy by villain. They pick a villain, whether it's successful people, multinationals, energy companies, and they just punish them for punishment sake and so they can spend those dollars elsewhere. But basically, Larry Lindsey says, really, you're not even generating maximum revenue for all this socialist agenda either. And so at the end of the day, you know, you're punishing the economy, you're punishing businesses and blue-collar workers. And as you know, in some states, capital gains will be above 50%. So, in effect, the government has a greater claim over your investments than you do. That is… exactly the definition of socialism when the government has a greater claim over your earnings and your investment than you.

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I believe we can stop these tax increases, both the business tax increases, the energy ones now these on investment because they're so damaging to the local economy, certainly the U.S. economy as well. I think most lawmakers understand we don't want a… business tax rate worse than China and on par with Syria. We don't want to go back to battle days of the last time Joe Biden was in the White House when we saw hundreds, if not thousands of businesses moving their jobs in manufacturing and headquarters overseas. That is a huge step backward. And I think the more lawmakers understand the impact here, I think the more gains we make. And I will tell you this, that we are going to fight it tooth and nail in the House of Representatives. 

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